Singtel’s Nxera Secures $643M Green Loan For DC Tuas

Singtel’s regional data center arm, Nxera DCT Pte Ltd., has secured a significant S$643 million green loan to finance the development of DC Tuas, Singapore’s most hyper-connected, high-power-density green data center. The five-year loan, backed by major financial institutions including DBS, OCBC, Standard Chartered, HSBC, and UOB, underscores Nxera’s ongoing commitment to building sustainable digital infrastructure. These banks will act as green loan coordinators. It aligns the project with Singapore's drive toward a greener economy and digital transformation.

DC Tuas will be the future-proofed facility designed for high-performance computing and AI-based workloads in the face of rising demand. Operations are to start in 2026 with next-generation liquid cooling systems to support more than 30kW per rack. This advanced cooling technology is integral to maintaining a Power Usage Effectiveness (PUE) below 1.25, making the data center highly energy-efficient. The project aims to optimize the use of essential resources, including land, power, and water, and will incorporate water recycling technologies to further enhance operational efficiency.

Arthur Lang, Singtel Group Chief Financial Officer, emphasized the importance of sustainability in Nxera’s business strategy. “DC Tuas will feature a green design and build, as well as next-generation liquid cooling systems, making it ideal for meeting the demand from enterprises for high-intensity compute and AI workloads,” Lang stated. “Sustainability is a core part of our data center business, and we are committed to developing and growing the industry’s most sustainable, next-generation digital assets. This loan will enable us to support Singapore’s digital economy while reducing our carbon footprint in keeping with our net-zero goals.”

In recognition of its sustainable design, DC Tuas has already achieved the prestigious Green Mark Platinum certification from Singapore’s Building and Construction Authority (BCA) and the Infocomm Media Development Authority (IMDA). This certification reinforces the facility’s commitment to environmental sustainability and operational efficiency.

Singtel’s green financing strategy, which aligns with its Olives Sustainable Financing Framework, played a crucial role in securing the loan. This framework ties financing to measurable sustainability progress, ensuring that projects contribute to the company’s long-term environmental goals. Previously, Singtel obtained a S$535 million green loan in December 2023 to support operations at its DC West and DC Kim Chuan facilities. The latest loan demonstrates Singtel’s ongoing efforts to embed sustainability across its operations while driving the growth of high-performance, energy-efficient digital infrastructure.

The development of DC Tuas aligns seamlessly with Nxera’s commitment to achieving net-zero emissions for Scope 1 and Scope 2 by 2028. This ambitious target underscores the company’s focus on integrating green technologies and practices into its operations to minimize carbon emissions and environmental impact.

The project reflects Singapore's broader goals of positioning itself as a leading hub for sustainable and AI-ready digital infrastructure in the region. DC Tuas sets a new benchmark for sustainability and efficient operations through the use of advanced cooling technologies and optimal resource usage. Its capacity to support AI-driven workloads makes it a critical component of the country's digital economy in addressing the growing demands of enterprises to stay ahead with cutting-edge computational solutions.

As the demand for digital infrastructure continues to rise, green data centers such as DC Tuas are essential for balancing technological advancement with environmental responsibility. By securing this green loan and investing in next-generation technologies, Nxera is not only contributing to Singapore’s digital economy but also setting an example for the industry in its pursuit of sustainable growth. This strategic move reinforces Singtel’s leadership in the data center space, showcasing its commitment to innovation and sustainability.